Workington leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in Workington enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Workington you would be well advised to check if your lease has between 70 and 90 years left. There are good reasons why a Workington leaseholder with a lease having around 80 years unexpired should take action to ensure that a lease extension is actioned without delay
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Using our service will provide you better control over the value of your Workington leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy discussions with the landlord of her leasehold apartment in Workington, Courtney started the lease extension process just as the lease was nearing the all-important eighty-year threshold. The transaction was finalised in August 2007. The landlord’s costs were kept to an absolute minimum.
Dr Harrison Watson owned a ground floor flat in Workington in April 2005. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparative premises in Workington with 100 year plus lease were valued around £255,000. The average amount of ground rent was £50 collected quarterly. The lease came to a finish on 10 July 2097. Taking into account 71 years remaining we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.
In 2009 we were contacted by Ms V Patel who, having purchased a one bedroom apartment in Workington in April 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Identical homes in Workington with a long lease were worth £254,200. The mid-range ground rent payable was £60 invoiced quarterly. The lease terminated on 15 June 2077. Given that there were 51 years left we estimated the compensation to the landlord to extend the lease to be between £43,700 and £50,600 not including legals.